While many investors (rightly) put enormous effort into selecting the perfect property and mortgage, your decision making doesn’t end there.
Once you snag your dream investment you earn the title ‘landlord’ and this carries with it some important responsibilities. It can be daunting but a few simple steps can set you up for a successful investment.
The first step is to select a good property manager. It can be a false economy to self-manage your property in the hope of saving a few dollars in rental management fees.
A good property manager will help maximise your rental returns and protect your investment through appropriate tenant selection and property checks.
They will also take the hassle out of property maintenance, so you can sit back, relax and watch your asset grow in value.
But property investment is not a totally hands-off game. Realestate.com.au offers these #5 tips you need to know about being a landlord:
- Employ a property manager – whilst it will cost a percentage of your rent, they’ll maximise your rental returns, simplify your responsibilities, find tenants and liaise with them and use their experience to minimise any potential problems.
- Be aware of your legal responsibilities – landlords need to guarantee the safety of any rented property and its fixed appliances and contents. Skimp on safety and you could find yourself in court.
- Take out landlord insurance – while a bond may cover small amounts of damage or loss of rent, landlord insurance covers other risks that don’t fall under a normal home and contents or strata title insurance policy.
- Look after your tenants – ensure the property is well maintained, be reasonable about any rent increases for great tenants and make sure any queries are addressed promptly.
- Maximise your returns – keep an eye on market rents, increase when the opportunity presents. Also seek expert advice about what you might be able to claim through the ATO (ie: council rates, water bills or capital improvements against tax).
Check out the full article and more tips on realestate.com.au.